Italian cable maker Prysmian (PRY.MI) shares fall more than 3 percent after
doubts surfaced on its possible takeover of Dutch rival Draka Holdings DRAK.AS
and on profit-taking after first-half results had pushed the stock to a
nine-month high on Monday.
"There is some small uncertainty on Draka. The stock was implying 100
percent (probability) of the deal being done," one broker says.
Prysmian and Draka announced preliminary talks at end of June on a tie-up.
On Monday Prysmian said talks are continuing, gave no timing, and said one
hurdle is meeting requirements of an EU merger directive.
The results on Monday, which beat analysts expectations for adjusted EBITDA
profit, led to a series of positive broker notes on Tuesday, including Cheuvreux
upgrading the stock to its selected list, from "outperform".
A second broker says the results are "good". He notes the Draka deal
represents 1 or 2 euros on the share price.
At 1013 GMT, Prysmian is down 3.1 percent at 12.06 euros.
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